How to Start a Brewery Business


The US economy is recovering from the effects of the pandemic that resulted in the closure of many businesses across the country. This comes as the authorities administered nearly 300 million doses of the vaccines. This means entrepreneurs will have more opportunities to set up new businesses.

One popular business that entrepreneurs can invest in is a microbrewery. And if the microbrewery captures a segment in the market and increases its production, it can build its market until it becomes a craft brewery.

Develop a Brewery Business Plan

Similar to other businesses, the entrepreneur should start with a business plan. A business plan lays the foundation of a business and can determine whether it can succeed or not. The business plan should have a company description, executive summary, market analysis, organization, products, and marketing strategy. Entrepreneurs should also include financial projections for the business covering the first five years of operations.

Get the Services of a Consultant

After developing the business plan, the entrepreneur should also hire a consultant who is knowledgeable about the industry. The consultant can provide additional details that the entrepreneur may have missed while developing the plan. These details include finding a suitable location for the business and looking for a head brewer.

The consultant can also help with projects before the launch of the brewery. He can also provide training for the staff of the business. The entrepreneur should make sure the consultant he hires has extensive experience in the industry. A consultant with a formal degree is ideal, especially if he is also a brewmaster. A brewmaster is the head of a brewery who knows everything about running a brewery. He can also train the staff and ensures all the equipment is running properly.

Identify Funding Sources

funding sources

At this point, the entrepreneur should identify the sources of the funds for the brewery. These funding sources may not be necessary initially, especially if the entrepreneur has enough finances to start the business. But it is also a good idea to prepare other sources of funds if the business needs additional capital for unforeseen expenses.

He has several options, including personal funds, capital from investors, and commercial financing. He can also opt to get a loan from the US Small Business Administration. The government agency can guarantee loans that the entrepreneur makes through private financial institutions and banks. These types of loans normally have better terms and interest rates.

Get Licenses and Permits

Since the brewery sells alcoholic drinks, the entrepreneur should apply for a permit from the Alcohol and Tobacco Tax and Trade Bureau of the US Department of Treasury. The Bureau regulates and collects taxes on the sale and importation of alcoholic drinks. They can apply for the permit online.

The entrepreneur should also check local laws and ordinances since some cities restrict the areas where businesses can manufacture and sell alcohol. Due to this, checking these laws and ordinances is important before the entrepreneur signs a property lease agreement. The entrepreneur should also apply for a local license to manufacture and sell beer.

The entrepreneur should also register with the US Food and Drug Administration (FDA). Due to this, they can expect a visit from the government agency, which will check if the business passes federally-mandated standards under the Good Manufacturing Practices for Craft Brewers (GMPCB) policies.

Acquire the Equipment

The entrepreneur can start acquiring the equipment necessary for the business. The equipment is costly, but they are good investments if the entrepreneur developed an airtight business plan. The equipment that the entrepreneur should buy includes a mash or lauter tun, heat exchangers, brew kettle, kegs, bottles, and a fermentation tank. It may take time for large equipment to be delivered, so the entrepreneur should consider this while planning for the brewery.

If the entrepreneur plans to distribute his products across the country, he should consider getting the best available industrial air compressor in the market. He will need this equipment for aeration, bottling, and cleaning. The equipment also maintains the cleanliness and high standard in the production of beer. The equipment is also essential if the entrepreneur intends to increase production to allow the business to become a craft brewery.

Get an Insurance Policy


One thing that the entrepreneur should not forget when setting up a brewery business is getting an insurance policy. The business insurance policy covers any injury or damage associated with work. It can be equipment breakdown, leakages, or even intoxicated customers that can interrupt business operations. Some policies can also protect the transport of beer from one location to another.

Setting up a brewery can take a lot of work, but it can be a lucrative business for any entrepreneur once it’s ready.

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